In all likelihood, customers of Oklahoma Natural Gas will begin paying for the latest rate increase and it could take effect yet this month or early July, should Corporation Commissioners sign off on a settlement of issues in the case reached this week.
According to testimony offered Thursday during a hearing held by regulators and an Administrative Law Judge, the impact of the requested $41,078,183 increase to cover the utility’s 2024 costs will be $1.69 more a month for the average residential ratepayer and another 57 cents for the utility’s low income customers. ONG estimated it has about 15,000 low income customers.
Administrative Law Judge Carly Ortel quickly recommended the commission adopt approval of the joint stipulation agreement that was filed Tuesday by ONG, the Attorney General and the Commission’s Public Utilities Division. The Oklahoma Industrial Energy Consumers group did not approve of the stipulation agreement but indicated it would not object if the Corporation Commissioners approved it.
However, consumers who voiced their opinions at the start of the hearing opposed the increase with one asking Commissioners, “How many more millions will we have to pay?”
Still another ONG customer called it “ridiculous” what is happening to the constant rate hikes he is asked to pay. One ratepayer complained about rate hikes being “rubber stamped annually” by commissioners and asked, “Why do they need more money? When are we going to focus on what’s good for Oklahomans? We shouldn’t be giving more money to the rich—when is enough enough?”
But the parties in the Joint Stipulation Agreement concluded the amount of the rate hike sought by ONG was “fair, just and reasonable,” a term often used in such increases. The Joint Stipulation Agreement is seen as a compromise and settlement of all the issues raised between the parties in the proceeding.
“The Stipulating Parties represent to the Commission that this Stipulation represents a fair, just and reasonable settlement of these issues between them, that the terms and conditions of the Joint Stipulation are in the public interest, and the Stipulating Parties urge the Commission to issue an Order in this Case adopting and approving this Joint Stipulation.”
The agreement covers what is known as the Performance Based Rate Change Tariff. Those involved agreed that ONG’s Earned Return on Equity for the 12 months ending December 31, 2024 was below the Allowed Return on Equity. It also indicated the new rates could be implemented after June 27.
Commissioners sat through the hearing but could not vote on the ALJ’s recommended approval which will come in a future public meeting.
